Shares fell 4.9% despite Q1 revenue and EPS surpassing estimates, as full-year guidance aligned with consensus.
DocuSign reported Q1 fiscal 2027 revenue of $830.2 million, up 9% year-over-year and above the $823.23 million estimate. Adjusted EPS reached $1.09, beating the $1 forecast. Free cash flow totaled $289.4 million, with operating cash flow at $321.7 million.
The company guided full-year revenue of $3.49 billion to $3.502 billion, matching the $3.49 billion consensus but reflecting slower growth. Q2 revenue guidance of $865 million to $869 million also fell short of elevated expectations, implying 8% annual growth. Non-GAAP operating margin was projected at 30.5% to 31%.
Shares declined 4.9% in morning trading, erasing gains from the earnings beat. DocuSign returned $317.5 million to shareholders via buybacks and held $1.0 billion in cash and equivalents at quarter-end.